Growthpoint’s Cintocare is first green-rated hospital in Africa
CAPE TOWN - GROWTHPOINT Properties is selling its newly developed specialist surgical hospital in Pretoria, Cintocare Private Surgical Hospital, to its 61.8 percent held subsidiary Growthpoint Healthcare Property Holdings for R515.6 million cash.
The 11 000m², seven-floor, specialised surgical hospital development by Growthpoint Properties and Cintocare is the first 5-star-rated green hospital in Africa, and only the fifth in the world with its specialised surgical mix and clinical business model.
Growthpoint chief executive Estienne de Klerk said in a presentation yesterday that they had developed the hospital on budget for R470m, and the hospital had opened on December 1 after a delay of about two months in the opening due to the Covid-19 pandemic.
He said the hospital was leased and operated by Cintocare Proprietary, a company that was 75 percent owned by the doctors and specialists that work in the hospital.
Growthpoint entered into a sale of letting enterprise agreement with Growthpoint Healthcare on March 31, 2021, to dispose of the hospital letting enterprise to Growthpoint Healthcare.
De Klerk said healthcare facilities with green design had been found to deliver faster recovery rates, reduced the need for pain medication, reduced secondary infections, and resulted in less time in hospital.
It would also be South Africa’s first hospital to generate its own oxygen on demand. Construction started on the hospital in July 2018.
“We have a great partnership with Cintocare. Together we have paved the way for specialist medical facilities in the country while establishing the specifications for a green building certification tool for local healthcare properties, which didn’t exist before,” he said.
Growthpoint Healthcare, with some R3.2 billion of assets including Cintocare, invests exclusively in and manages healthcare property assets in South Africa, including hospitals, clinics, biotechnology facilities and laboratories.
Growthpoint holds 61.8 percent of the Class A shares in Growthpoint Healthcare, while the remaining shares are owned by a number of investment holders, including institutional investors.
De Klerk said Growthpoint Healthcare represented about 2 percent of the group’s total portfolio. Growthpoint Healthcare was ungeared at this stage, and funding for the acquisition was being finalised.
The hospital has about 100 beds, and it specialises in head and neck, spinal and vascular surgery. De Klerk said the facility could in time be expanded to 160 beds without extending the footprint of the hospital.
For the year to June 30, 2020, Growthpoint Healthcare had a development portfolio worth R2.6bn comprising four hospitals and one medical chambers development.
He said Cintocare’s doctor, patient, staff and visitor experience had been a focal point for the design strategy.
The medical professionals at the hospital were supported by state-ofthe-art equipment and technology, the cost of which would have pushed the hospital cost to well over R600m.
Growthpoint, South Africa’s largest primary JSE-listed Reit. is invested in real estate and communities across Africa, Europe, the UK and Australia and owns the biggest portfolio of green-certified buildings in Africa.
Growthpoint Properties shares rose by 2.89 percent to close at R13.53 on the JSE yesterday.